2023.11.2912:04:00UTC+00Gold Gains Further As Bond Yields Ease On Dovish Fedspeak

Prices of the yellow metal continued to gain as comments by Fed speakers triggered renewed hopes of earlier-than-expected rate cuts by the Fed. An easing in inflation in several regions of Europe also bolstered sentiment, dragging bond yields lower and lifting gold prices.

Ten-year bond yields in the U.S. dropped to a low of 4.25 percent before rising to its current level of 4.29 percent. Bond yields eased in tandem in Europe and Asia as well.

Dollar Index, a measure of the dollar's relative strength also dropped to 102.47 earlier in the trade. The index is currently at 102.81.

The dip in bond yields and the dollar's retreat augurs well for the dollar-denominated prices of the non-interest-bearing yellow metal.

The expected dip in the PCE-based inflation readings in the U.S. also supported sentiment for the yellow metal. Data to be released on Thursday is expected to show the year-on-year PCE Price Index falling to 3 percent, from 3.4 percent in the previous month. The core component of the same is also seen declining to 3.5 percent, from 3.7 percent in the previous month. The month-on-month PCE price index is seen dropping to 0.1 percent, from 0.4 percent in the previous month. The core component of the same is also seen reducing to 0.2 percent, from 0.3 percent in the previous period.

Amidst the expectations, Gold Futures for December settlement rallied 0.14 percent to trade at $2,042.90. The day's trading range has been between $2,052.10 and $2,036.10. The 52-week trading range was between $1,758.2 and $2,085.40.

Spot Gold gained 0.01 percent to trade at $2,041.51 per troy ounce. The day's trading range has been between $2,035.45 and $2,052.01. The 52-week trading range was between $1,744.41 and $2,080.72.